The MPV will be premium in terms of features and price.

It looks like the falling demand for MPVs in India has not affected Mahindra & Mahindra to go ahead with its plans for a new MPV. A set of spy shots of a mysterious vehicle under heavy camouflage was leaked online and is reportedly the first picture of Mahindra's all new MPV snapped in Chennai.

The spy pictures and reports of Gaadiwaadi.com say the vehicle in production avatar will be called the TUV500 and most likely replace the Xylo. Codenamed "U321", the MPV will be pitted against the Toyota Innova Crysta and hence it is expected to be premium in terms of features and price in comparison to the Xylo.

The pictures indicate the silhouette of the MPV will retain the boxy design just like the Xylo. The camouflaged test mule looks longer than the Xylo. The vertical chrome slats at the grille area are in line with the new vehicle's design. The pictures indicate the MPV will have chunky front and rear bumpers. The test mules also feature sloping windshield and bonnet, and short overhangs.

The MPV is expected to be underpinned in an all-new platform. It is too early to say on powertrains, but Mahindra is expected to employ 2.2-litre mHawk diesel in the MPV. There is also a possibility of the new downsized 1.99-litre mHawk diesel engine making its way to the MPV. It has been reported that Mahindra is working on a number of petrol engines for its future vehicles. Among them, a 1.8-litre petrol unit may power the new MPV. The launch of the TUV500 is expected in the second half of 2017.